Gielda Papierow Wartosciowych w Wrszw : GPW Introduces New Segmentation of NewConnect

2016-06-29 15:27:43

Warsaw, 29 June 2016

PRESS RELEASE

• The new segmentation of NewConnect is one of the main elements of the NewConnect 2.0 project which aims to improve trade safety and market transparency.
  
• After 28 September 2016, the segments NC Lead, NC HLR and NC SHLR will be replaced by the segments NC Focus, NC Base and NC Alert.
  
• The classification criteria for companies in the NCIndex will be modified while NCIndex30 will no longer be calculated or published.

By changing the segmentation of the NewConnect market, GPW implements one of the main objectives of the NewConnect 2.0 project. Underway since 25 May 2015, the project aims to strengthen trust in the market and make it more attractive to different investor groups. Further, NewConnect 2.0 will develop a new NewConnect website and reform the Good Practice of Companies Listed on NewConnect and the Good Practice of Authorised Advisers.

The new segmentation of NewConnect has been designed by the Exchange in close co-operation with the Council of Authorised Advisers. The new segmentation rules will help investors identify the condition of companies listed on NewConnect and the resulting investment risks, making the market more transparent and encouraging the search for new investment opportunities.

'In late September 2016, GPW will complete the first verification and classification of companies in the new segments of NewConnect. The new market architecture aims to improve its transparency and facilitate investing in shares listed in the Alternative Trading System organised by GPW. The new segmentation of NewConnect is one of the main modifications undertaken as part of market reform to improve trade safety, quality of listed companies and trust in the market. I believe the implementation of the new segmentation rules will help enhance NewConnect transparency and allow investors to seek new investment opportunities. Later this year, we are planning further actions promoting NewConnect and activating both investors and issuers,' said Professor Małgorzata Zaleska, President of the GPW Management Board.

The market structure will change with the introduction of three segments which will comprise all companies listed in the Alternative Trading System: NewConnect Focus (NC Focus), NewConnect Base (NC Base), NewConnect Alert (NC Alert). The classification terms in the segments NC Focus and NC Alert are based on specific qualitative criteria, mainly the financial standing of companies and their compliance with obligations of the companies listed on NewConnect. NC Base will comprise all other companies, i.e., companies which are not classified in NC Focus or NC Alert, including companies whose shares have been listed on NewConnect for less than 12 months.

The new segmentation will replace the existing segments based mainly on criteria of liquidity: NC Lead, NC High Liquidity Risk (NC HLR) and NC Super High Liquidity Risk (NC SHLR). The classification performed on 28 June 2016 was the last classification in these segments.

Along with the introduction of the new segmentation, the NewConnect indices have been modified. Beginning 16 September 2016, NCIndex30 will no longer be calculated and published after the trading session. The classification rules of companies in the NCIndex, aligned with the new segmentation of NewConnect, will apply as of the quarterly revision to be completed after the trading session on 16 December 2016.

Currently, NewConnect lists 413 companies, including 9 companies, whose total capitalisation is approximately PLN 8.7 billion.

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Warsaw Stock Exchange (GPW) is the biggest securities exchange in Central and Eastern Europe. GPW operates a regulated market of shares and derivatives and the alternative stock market NewConnect for growing companies. GPW is developing Catalyst, a market for issuers of corporate and municipal bonds, as well as commodity markets. Since 9 November 2010, GPW is a publicly traded company on the Warsaw Stock Exchange. For more information visit http://www.gpw.pl